AP Executive Morning Briefing
The Associated PressThe top business news from The Associated Press for the morning of Friday, Sept. 5, 2008:
Asian markets plunge after Wall Street sell-off
TOKYO (AP) — Asian stock markets plunged Friday after more bad news on the U.S. economy, a vital export market, triggered a broad sell-off on Wall Street overnight. Disappointing reports on U.S. retail sales and jobless claims undercut hopes for a late-year recovery in the U.S. and depressed investor sentiment across Asia. In Japan, the benchmark Nikkei 225 index closed down 2.75 percent at 12,212.23. Hong Kong's Hang Seng index tumbled 3.1 percent to 19,752.65, dropping below the key psychological level of 20,000 to its lowest point in more than a year. Markets in mainland China, India, Australia and Singapore were also down more than 2 percent.
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Oil steady in Asia ahead of OPEC meeting
SINGAPORE (AP) — Oil prices were steady Friday in Asia below $108 a barrel as investors wait to see if OPEC moves to restrict output at its meeting next week amid a two-month plunge in prices. Light, sweet crude for October delivery was down 17 cents to $107.72 a barrel in electronic trading on the New York Mercantile Exchange midday in Singapore. The contract overnight fell $1.46 to settle at $107.89.
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Greenspan: Don't use Fed as a 'magical piggy bank'
WASHINGTON (AP) — Troubled by the Bear Stearns debacle, former Federal Reserve Chairman Alan Greenspan is advocating a new way of dealing with government bailouts of companies whose sudden collapse could wreak havoc on the country's economic and financial stability. Greenspan says Congress needs to give the government new powers to handle troubled companies to minimize any potential losses to American taxpayers. A self-described libertarian Republican, Greenspan has a reputation for being wary of giving the government extra powers. However, in crisis situations, there needs to be a clear process for handling bailouts, rather than depending on the Fed to do so, he reckons.
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Lloyd's of London push into emerging markets
LONDON (AP) — Lloyd's of London, the world's biggest insurance market, signaled its intention to push its business in emerging markets in Asia and Latin America and oil rich countries in the Gulf, warning on Friday that a shift in world power can not be ignored. Lloyd's Chairman Peter Levene also hit back at pricing criticism directed at the insurance market amid threats from major Atlantic hurricanes like Gustav, taking a dig at Florida Gov. Charlie Crist for asking for lower-than-justified premiums for residents in his state.
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Boeing, machinists union meet with mediator
SEATTLE (AP) — Representatives from Boeing Co. and the machinists union met with a federal mediator Thursday as the clock ticked on an unusual two-day contract extension after union production workers soundly rejected a contract offer and voted to strike. Members of the union representing 27,000 aircraft assembly workers at the aerospace giant voted overwhelmingly Wednesday to strike for an unprecedented second time in three years, then learned both sides had agreed to a 48-hour contract extension at the request of Washington Gov. Chris Gregoire and federal mediators.
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Wet summer brings mushroom boom to Northeast
ACRA, N.Y. (AP) — There's a mushroom boom in the wet woods of the Northeast this summer. Hillsides bloom with black trumpets. Disc-shaped mushrooms called artist's conch sprout from tree trunks. Forests are laced with tasty chanterelles giving off faint whiffs of apricot and with a pretty but deadly variety called destroying angels. Rainfall has been well above average around New York and New England this summer, with some areas hit with twice as much precipitation from July 1 through Aug. 18, according to the Northeast Regional Climate Center at Cornell University. Rain is fungus fuel, and it has helped along a bumper crop for mushrooms that is expected to last into the fall foraging season.
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Stocks plummet after retail, unemployment data
NEW YORK (AP) — Dejected investors sent stocks plunging Thursday, hurtling the Dow Jones industrials down more than 340 points after retailers and the government added to a mountain of bad economic news and devastated hopes for a late-year recovery. The market was already nervous as it waited for the government to release its August employment report on Friday. So news from the nation's major retailers that shoppers curtailed their spending last month due to higher gas and food prices came as a heavy blow.
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Jobless claims jump is bad omen for economy
WASHINGTON (AP) — Jobless claims rose unexpectedly last week, the government said Thursday, while companies responded to the slowing economy by producing more with fewer workers. It was not great news for American workers, who have seen jobs decline and wages erode, but it may signal less inflation worries for the Federal Reserve.
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Slow August sales signal more weakness in retail
NEW YORK (AP) — When it came to buying their children new jeans and trendy tops, parents held the line: They focused on basics at discounters and waited for the best deals, resulting in weak August sales at many stores. That's a bad sign for the holiday season as families may be just as cautious with their gift-giving. Even lower gas prices may not offer retailers much relief in the months ahead as shoppers are still seeing personal incomes fall and food prices remain high. In fact, Wal-Mart Stores Inc., the world's largest retailer, as well as warehouse club operators such as Costco Wholesale Corp. remain among the few bright spots as shoppers focus on the lowest prices.
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Oil's climb forced companies to become leaner
NEW YORK (AP) — Conventional wisdom had long held that some industries would collapse if oil topped $100 a barrel. As oil neared $150, sending costs higher for everything from jet fuel to plastic jars, the question was how many companies would succumb. The surprising answer: Not many. Some have even thrived.
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Japan Markets
TOKYO (AP) — Japanese shares buckled Friday under the weight of mounting bad news on the U.S. economy, which triggered a broad sell-off on Wall Street overnight. The benchmark Nikkei 225 index shed 345.43, or 2.75 percent, to 12,212.23 — its lowest closing level since March 18. The broader Topix lost 2.56 percent to 1,170.84.
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Dollar-Yen
TOKYO (AP) — In currencies, the dollar stood at 106.87 yen Friday afternoon in Asia from 106.60 yen overnight; on Thursday in Tokyo it was trading above 108 yen.
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